Opsens Inc T.OPS

Healthcare Medical Devices

OpSens Inc. is a medical device cardiology-focused company. The Company offers an advanced optical-based pressure guidewire that aims at improving the clinical outcome of patients with coronary artery disease. The Company’s segments include Medical and Industrial. The Medical segment focuses on physiological measurements, such as Fractional Flow Reserve (FFR) and Diastolic Pressure Ratio (dPR) in the coronary artery disease market and also supplies a range of miniature optical sensors to measure pressure and temperature to be used in a range of applications that can be integrated into other medical devices. The Industrial segment develops, manufactures and installs fiber optic sensing solutions for critical and demanding industrial applications. Its flagship product, the OptoWire, is a second-generation fiber optic pressure guidewire designed to provide the lowest drift in the industry and lesions access. It is approved for sale in the United States, European Union, Japan and Canada.

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Post by retiredcfon Jan 12, 2023 9:20am

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Post# 35218007

RBC

Maybe we can finally get the SP moving in the right direction. As this is their intital reaction, there's some potential for them to raise their target. Trading will be interesting in the afternoon depending on how well the CC went. GLTA

January 12. 2023

Opsens Inc.
FQ1/23: Results ahead of estimates with strong growth in revenues

TSX: OPS | CAD 1.75 | Outperform | Speculative Risk | Price Target CAD 4.00

Sentiment: Positive

Our view: OpSens reported FQ1/23 (Nov-qtr) revenues at $10.2MM, above RBCe ($9.1MM) and consensus ($9.4MM). Revenues were up +13% q/q and +26% y/y. Net loss of $3.6MM during the quarter was better than RBCe ($4.1MM loss) and consensus ($3.9MM loss). On the earnings call, we expect the focus to be on the operational outlook - procedure volumes and inital feedback on SavvyWire procedures in the US and Canada and trends around acceptance and re-orders in SavvyWire. We also expect updates on the company's strategy for a full commercial launch of SavvyWire in the US.

Revenues above RBCe and consensus estimates. FQ1/23 revenues of $10.2MM (+12.6% q/q and +25.9% y/y) were above RBCe ($9.1MM) and consensus ($9.4MM). Total medical revenues were $8.9MM (+12% q/q; +21% y/y), including FFR and dPR sales of $5.2MM (+6% y/y). FFR and dPR revenues were led by strong performance in the US, Canada and EMEA (+15% y/y) with management noting strong US sales (+38% y/y), partially offset by decline in Japan (-31% y/y) due to increased inventory levels and slower-than-expected demand. Optical medical products revenues (including the supply agreement with Abiomed) were $3.3MM (+38% y/y). TAVR (SavvyWire) revenues were $0.4MM, in line with RBCe. Industrial revenues were $1.0MM (+44% y/y), above RBCe ($0.9MM).

FQ4 net loss of $3.6MM was better than RBCe ($4.1MM loss) and consensus ($3.9MM loss). Gross margins were 58%, above RBCe (51%) and consensus (52%) and prior quarter (48%) led by better product mix, more direct sales and higher volume sales. Operating expenses at $9.7MM (+14% q/q; +62% y/y) were above RBCe and consensus (~$8.6MM). Operating expenses have increased as the company has invested in sales and marketing of the SavvyWire product launch along with an increase in R&D due to structural heart and coronary artery projects.

Cash position. OpSens ended FQ1/23 with a cash position of $17.5MM (vs. $23.8MM as of Aug-22). The company also closed a bought deal offering in December for gross proceeds of $11.5MM which should supplement the cash position.

Operational updates. OPS launched its Canadian and US limited market release of SavvyWire ahead of schedule and has launched the next stage of its commercialization efforts in Canada and the US. The company noted initial results are indicating strong acceptance of SavvyWire by physicians and hospitals with premium pricing and rapid reorder rates. OPS has also submitted the regulatory filing for SavvyWire approval in Europe with an approval expected in mid-2023.

Conference call at 11:00am ET today. Dial-in details: 1-833-756-0865 or 1-412-317-5754 or via a live webcast (link).